NNPC Slashes Petrol Price to N860/Litre Amid Intensifying Price War With Dangote Refinery

The Nigerian National Petroleum Company Limited (NNPC) has slashed the pump price of Premium Motor Spirit (PMS), popularly known as petrol, to N860 per litre.

The new price, effective from Monday, March 3, 2025, represents a notable reduction from the previous nationwide average of N920 per litre. This development comes as a welcome relief to millions of Nigerians who have been grappling with escalating living costs amid economic challenges.

As the country’s dominant fuel supplier, NNPC’s decision is poised to reshape the dynamics of the petroleum market.

A Price War Fuels Competition

The price reduction arrives against the backdrop of an intensifying price war among major petroleum marketers and independent dealers.

This competitive landscape has been further influenced by recent fluctuations in global crude oil prices, prompting key players in Nigeria’s energy sector to adjust their pricing strategies.

Just last week, Dangote Petroleum Refinery and Petrochemicals Limited, a major private player, lowered its ex-depot price of petrol from N890 per litre to N825 per litre, the second price cut in February alone. This move by Dangote set the stage for NNPC’s latest announcement, amplifying the ripple effect across the industry.

Following Dangote’s reduction, the refinery issued a public notice highlighting three partner filling stations in Lagos now offering competitive rates: MRS at N860 per litre, AP at N865 per litre, and Heyden at N865 per litre.

NNPC’s subsequent price drop to N860 per litre has further escalated this pricing battle, compelling private marketers to rethink their strategies to retain market share.

Relief for Consumers Amid Economic Strain

For everyday Nigerians, the lower pump prices signal a much-needed respite from the financial burden of high fuel costs. Petrol, a critical driver of transportation and economic activity, has long been a sore point in the nation’s cost-of-living crisis.

The reduction from N920 to N860 per litre translates to tangible savings for households and businesses alike, particularly for those reliant on fuel-powered transport and generators in the face of erratic electricity supply.

Sustainability in Question

While the price slash has been widely welcomed, skepticism lingers among some Nigerians about its long-term viability.

Analysts point to the interplay of global crude oil prices, foreign exchange challenges, and domestic production capacity as factors that could undermine the sustainability of the current pricing trend.

NNPC’s dominance as a state-owned entity, coupled with Dangote Refinery’s growing influence as a private powerhouse, raises questions about how long this competitive pricing can hold without structural reforms in Nigeria’s energy sector.

The timing of the reductions, twice in February by Dangote and now by NNPC in early March suggests a deliberate effort to ease public pressure amid rising inflation and economic hardship.

However, without a clear roadmap to stabilize supply chains and address underlying market distortions, some fear the relief may be short-lived.

A Shifting Market Landscape

The ongoing price war underscores a transformative moment for Nigeria’s petroleum industry. NNPC’s decision to align its pump price with Dangote’s partner stations at N860 per litre signals a convergence of state and private sector efforts to capture consumer goodwill.

Meanwhile, independent marketers and smaller players may find themselves squeezed, forced to either match these rates or risk losing customers.

As the situation unfolds, all eyes remain on how this pricing strategy will evolve. For now, Nigerians are savoring the immediate benefits of cheaper fuel, even as they brace for the uncertainties of a volatile market.

Whether this marks the beginning of a sustained downward trend or a fleeting reprieve, the NNPC’s N860 per litre petrol price has undeniably set the tone for a fiercely competitive chapter in Nigeria’s energy saga.

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